How To Set Up An M&A Scorecard

Step one on any M&A transaction is an M&A scorecard that gives you a clear checklist of all the information you’ll need to produce for a material event. 

Streamline due diligence and be deal-ready by being prepared. 

What is an M&A scorecard?

Ansrada’s scorecards can be adapted, templated and reused to suit the needs of any sized company or transaction, making them a major advantage when it comes to deal preparation and the value of your data.

We asked Sam Melrose, head of our Customer Success team, to run through the steps of setting up your own scorecard, so you can ensure you have all the essential topics, document requirements and best-practice framework covered in your next deal.

“I’ll walk you through how to create and send a new scorecard to another company, someone in the same company - or even yourself - using an existing template,” said Sam. “Scorecards are an incredible tool for speeding up deal preparation by providing a clear structure to follow to reach a successful outcome. The ability to assign topics means that the relevant people are aware of exactly what’s required of them, so they can get the job done effectively and efficiently.”

Why are scorecards important?

Scorecards are important in due diligence because they provide a structured framework for organizing essential topics, document requirements, and best practices during the deal preparation process. They offer several benefits:

• Clarity and organization 
• Efficiency
• Consistency
• Risk management

How to set up an Ansarada M&A scorecard: step by step

1. Select ‘scorecards’ in the top navigation menu. (Scorecards are accessible through the Ansarada platform, not directly from your virtual data room.
2. Under ‘pending scorecards’ select ‘create scorecard’ and give it a name.
3. Go to quick start and select ‘use a template’ to use an existing template. These comprehensive templates have been built off the learnings and insights of more than 35,000+ transactions, making them the ideal starting point for deal preparation of any kind. Tip: Anyone can create and edit scorecard templates. This template can then be used as a quick start when sending out a new scorecard to speed up processes further.
4. Under ‘attributes’, select your industry, material event type and company size from the dropdown menu.


5. Select ‘create scorecard’. Your scorecard will pre-populate with the template's topics and requirements. You can always customize and add in your own topics at a later stage.
6. Under ‘available topics’, select any existing topics that you would like to add then select ‘continue’.
7. Under ‘send scorecard’, you can edit the scorecard details and topics to suit the specific needs of your transaction.


8. Under ‘reviewers’ you can assign a reviewer to verify certain areas. This enables task allocation so that every team member knows exactly what they need to do to contribute to a perfect score.
9. Select continue. Under ‘recipient’, you can select who to send the Scorecard to. If it’s for your own use, it can be sent to your account to start filling in, or you can select the person who should receive it.
10. Hit ‘send scorecard’, and the recipient will be prompted to begin by completing the quiz! 

Watch your score increase as you work towards 100% readiness for your transaction and know exactly how far you’ve got to go before you reach your optimum outcome.

Understanding M&A scorecards with Ansarada

Overall, scorecards play a crucial role in enhancing the effectiveness, efficiency, and thoroughness of the due diligence process, ultimately contributing to successful deal outcomes. Need help setting up your first one? Contact our team at Ansarada to help you get your scorecard to align with your business goals.

FAQs

Can Ansarada's M&A scorecards be customized?

Yes, Ansarada's scorecards are adaptable and can be tailored to suit the specific needs of different transactions or companies. Users can customize templates, assign tasks, and modify criteria as necessary for thorough and effective due diligence.

How do Ansarada's scorecards improve collaboration?

Ansarada's scorecards facilitate collaboration by assigning responsibilities and providing transparency. They enable clear communication and coordination among team members, leading to smoother and more efficient processes.

What does it mean to do your due diligence?

Doing your due diligence means conducting thorough research and investigation before making a decision or entering into a transaction. It involves assessing risks, gathering information, and ensuring that you have a comprehensive understanding of the situation.